$1 in 2012: The Value and Purchasing Power
In 2012, the United States economy was still recovering from the Great Recession of 2008. The inflation rate was relatively low, and the value of the US dollar was relatively stable. But what could you buy with $1 in 2012?
Purchasing Power
In 2012, $1 had a purchasing power similar to that of $0.87 in 2002 and $0.73 in 1992. This means that the value of $1 in 2012 was higher than it was in previous decades.
With $1 in 2012, you could buy:
- 1 gallon of milk: The average price of milk in 2012 was around $3.38 per gallon, so $1 could buy approximately 1/3 of a gallon of milk.
- 1 loaf of bread: The average price of bread in 2012 was around $2.48 per loaf, so $1 could buy approximately 1/2 of a loaf of bread.
- 1 cup of coffee: The average price of a cup of coffee in 2012 was around $1.38, so $1 could buy almost a full cup of coffee.
- 1 newspaper: The average price of a newspaper in 2012 was around $1.25, so $1 could buy almost a full newspaper.
Salary and Wages
In 2012, the minimum wage in the United States was $7.25 per hour. Based on this wage, $1 in 2012 was equivalent to:
- 8.2 minutes of minimum wage work: If you worked for minimum wage, you would need to work for approximately 8.2 minutes to earn $1.
- 0.14 hours of average work: If you worked for an average hourly wage of around $22.50, you would need to work for approximately 0.14 hours (or around 8.4 minutes) to earn $1.
Inflation Rate
The inflation rate in 2012 was around 2.1%, which means that prices for goods and services increased by 2.1% compared to the previous year. This means that the value of $1 in 2012 was eroded by inflation, and the purchasing power of $1 decreased over time.
Conclusion
In 2012, $1 had a relatively high purchasing power compared to previous decades. However, due to inflation, the value of $1 decreased over time, and the purchasing power was eroded. Understanding the value and purchasing power of $1 in 2012 can provide insight into the economy and the cost of living during that time period.
